Passive management is an investing strategy that tracks a market-weighted index or portfolio. Passive management is most common on the equity market, where index funds track a stock market index, but it is becoming more common in other investment types, including bonds, commodities and hedge funds.
An index fund is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance ("track") of a specified basket of underlying investments. While index providers often emphasize that they are for-profit organizations, index providers have the ability to act as "reluctant regulators" when determining which companies are suitable for an index. Those rules may include tracking prominent indices like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allow for greater tracking error but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.
Warren Edward Buffett is an American businessman, investor, and philanthropist who currently serves as the co-founder, chairman and CEO of Berkshire Hathaway. As a result of his investment success, Buffett is one of the best-known investors in the world. As of April 2024, he had a net worth of $139 billion, making him the ninth-richest person in the world.
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Founded in 1839 as a textile manufacturer, it underwent a drastic restructuring into a conglomerate starting in 1965 under the leadership of chairman and CEO Warren Buffett and vice chairman Charlie Munger. Today, the company's earning power is diversified across a broad portfolio of subsidiaries, equity positions and other securities. Insurance is a major area of operations and the float generated serves as an important source of capital. Buffett and Munger are known for their advocacy of value investing principles and under their direction, the company's book value has grown at an average rate of 20%, compared to about 10% from the S&P 500 index with dividends included over the same period, while employing large amounts of capital and minimal debt.
Value investing is an investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis. All forms of value investing derive from the investment philosophy taught by Benjamin Graham and David Dodd at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis.
Ruane Cunniff LP, based in New York City, is the investment firm founded in 1969 by William J. Ruane, Richard T. Cunniff and Robert Goldfarb.
David Sanford "Sandy" Gottesman was an American businessman, billionaire, and philanthropist. He founded First Manhattan Co. (FMC), and was noted for his friendship with Warren Buffett.
John P. Reese is an American author, financial columnist, and money manager. He has written two books about investing, and is a columnist for several international financial publications, including Forbes magazine and Forbes.com; Canada's The Globe and Mail; RealMoney.com ; and the Israeli newspaper Globes.
The Warren Buffett Way, a book by author Robert Hagstrom, which outlines the business and investment principles of value investing practiced by American businessman and investor Warren Buffett.
The early history of private equity relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel although interrelated tracks.
AdvisorShares Investments is a US-based investment management firm based in Bethesda, Maryland which offers actively managed exchange-traded funds (ETFs) through the AdvisorShares Trust. AdvisorShares partners with third party financial advisers who already manage clients’ assets to package their investment strategy using exchange-traded funds. As part of promoting its funds it also provides educational support to help financial advisors and investors understand actively managed ETFs and their underlying investment strategies.
Salida Capital was a Canadian hedge fund, private equity and private wealth management firm, based in Toronto, Ontario, and founded in 2001. Salida's assets under management peaked in early 2008 at CAD $1.3 billion and then declined to approximately $300 million following the 2008 financial crisis. The firm struggled for several years before deciding to wind-down the two remaining funds in 2013, and deregistering with the Ontario Securities Commission in September 2013.
Byron David Trott is the founder, chairman and co-CEO of BDT & MSD Partners, a merchant bank that provides advice and capital to family and founder-led companies. Formerly, Trott was vice chairman of Investment Banking at Goldman Sachs.
Invesco PowerShares is an American boutique investment management firm based near Chicago which manages a family of exchange-traded funds or ETFs. The company has been part of Invesco, which markets the PowerShares product, since 2006.
Tracy Britt Cool is an American business executive and entrepreneur who was widely noted as a Warren Buffett protégé. She chaired four Berkshire Hathaway subsidiaries before co-founding Kanbrick, a private equity firm, in 2020.
Ted Weschler is an American hedge fund manager who is the current investment manager at Berkshire Hathaway. Alongside Todd Combs, he is frequently cited as a potential future Chief Investment Officer of Berkshire.
Bruce S. Sherman is an American businessman and co-founder of the wealth-management firm Private Capital Management and the chairman and majority owner of the Miami Marlins of Major League Baseball.
Ruth Levy Gottesman is an American educator. Gottesman is the chair of the board of trustees of the Albert Einstein College of Medicine (AECOM) in the Bronx, New York, and a long-time professor there. In February 2024, she donated $1 billion to AECOM to ensure that tuition would be free in perpetuity to all future students. It is the largest gift ever made to any medical school in the country.
In the 2010s Private equity massively grew. As of 2019, there were nearly 7,000 private equity firms within the United States, nearly $2.5T globally in unspent cash, and dealmaking in private equity accounted for 13% of global acquisitions.
